State Organizations Can Help Promote the Supply Base
Neil De Koker, OESA

Finally, the industry is putting together a string of strong sales and production years.  Forecasters are looking at an increase in 2012 of some 800,000 units for North American light duty vehicle production.  Suppliers are looking to meet these increased production volumes with larger workforces and higher R&D and capital investments.  As suppliers make these plant and office investment decisions, they need state and local governments to be partners in making the local business environment the most competitive possible.

In a 2011 OESA survey, members identified many issues affecting site location decisions including:

• Labor skill availability and cost
• Logistic considerations
• State business taxes
• Utility costs
• Regulatory and permitting environment

OESA staff recently attended the initial meeting for MICHauto, an association dedicated to promoting, retaining and growing the automotive industry in Michigan.  It is a key economic development initiative of the Detroit Regional Chamber.  OESA applauds this initiative and many like it in other states that either have, or want to have, significant auto investment.   Alabama, Georgia, Mississippi, South Carolina and Tennessee also have similar public/private partnerships that support automotive suppliers and OEMs in their states by providing advocacy, information and eliminating the bureaucracy associated with investing in those states.

States that are serious about this industry will:

• Provide quick and easy access to information for companies seeking information on site location, incentives and workforce
• Maintain an up-to-date listing of automotive facilities in the state
• Provide clearinghouses for companies seeking new business opportunities
• Develop programs and plans to attract and grow the talent pool
• Foster collaboration between industry, government and academia in each state

OESA sees these various state organizations as a way to further support and promote the supply base, and is prepared to work collaboratively with each one.  In fact, only through collaboration will these organizations remain coordinated in advocacy activities to avoid duplication of effort.  In the end, more advocacy, broader support and greater understanding will better promote the supplier community and enhance the industry’s competitive position.

These state organizations have been welcoming to OESA and to our members.  We have cooperated on forums for exchanging ideas and creating mechanisms to address state issues that affect suppliers and OEMs.  For more information on any of these state organizations, contact Glenn Stevens at gstevens@oesa.org.

In closing, I encourage suppliers to investigate participation in these state public/private organizations.  In doing so, suppliers will help influence local operating conditions and better the competitiveness for the supplier community and for our industry as a whole.

As always, I look forward to your views and can be reached at 248.952.6401 ext. 224 or ndekoker@oesa.org.